Research report that I was quoted extensively in.

1. September 2010
Brand Marketing Online:
David Hallerman Paid, Owned, Earned
dhallerman@emarketer.com
Report Contributors
Lisa Phillips, Tracy Tang
Executive Summary: Some of today’s greatest success stories in branding blend ingredients from the three kinds
of marketing media: paid, owned and earned. Paid media is advertising inserted next to another’s content; owned
media is brand-created content; and earned media is getting someone else to provide content about a brand.
115206
The heralded Old Spice Man campaign from Procter & Gamble
US Online Advertising Spending Share, by Objective,
2009-2014 for example, started off with TV commercials (paid), migrated to
% of total a brand microsite and Facebook fan page (owned), and is still
boosted by consumer interaction and word-of-mouth on social
35.2% 35.7% 36.9% 38.6% 40.4% 41.9% sites and beyond (earned)—while continuing to be fed by more
online advertising to drive traffic.
Each media offers distinct advantages. Paid advertising gives
marketers immediate broad reach. An owned brand website
gives marketers concrete ways to engage consumers. And
64.8% 64.3%
earned media, such as word-of-mouth, gives marketers insight
63.1% 61.4% 59.6% into how people perceive them as well as their competitors.
58.1%
It is important that all marketing media work together. The best
approach is holistic, where each channel supports the others,
as when paid advertising produces earned word-of-mouth,
which stimulates traffic to owned microsites.
At this phase in brand marketing’s shift to the digital space, it is
difficult to judge one media’s value by dollars alone. That said,
marketers tend to spend more for paid media than owned or
earned. And the trend toward more online brand-focused ad
2009 2010 2011 2012 2013 2014
spending is clear: Between 2010 and 2014 it will rise from a
Direct response Branding 35.7% share to nearly 42%.
Note: numbers may not add up to 100% due to rounding
Source: eMarketer, May 2010
115206 www.eMarketer.com
Key Questions
I What is the strong suit for each marketing media?
For additional information on this chart, see the Endnotes section.
I Is there an online ad format that is best for branding?
I Is a website alone sufficient for a brand’s owned media presence?
I How can branded content have greater reach than advertising?
I How do the overall requirements of earned media differ from
those for social network marketing?
Digital Intelligence Copyright ©2010 eMarketer, Inc. All rights reserved.

2. The eMarketer View Control issues underscore how the three marketing
media fit into an overall brand campaign. Marketer
control, or lack thereof, is what distinguishes the various media
Key eMarketer Numbers: Branding Online choices from one another.
$14.71 billion US online display ad spending in 2014, up from
$8.56 billion in 2010 With paid media, marketers control the message and have partial
$5.52 billion US online video ad spending in 2014, up from control of its placement. Further, paid media is more limited by its
$1.51 billion in 2010
costs than the other two marketing media.
13.6% Growth of US online display ad spending in 2014,
up from 12.9% in 2010
Owned media, as the name implies, offers marketers the most
37.5% US online video ad spending's share of total
online display ad spending in 2014, up from control in what they can say and how they can distribute, use and
17.6% in 2010 reuse the content.
Source: eMarketer, May 2010
117412 Brands have no real control over earned media, although
For additional information on this chart, see the Endnotes section. sometimes marketers can manipulate it. The lack of direct
influence on consumer word-of-mouth and media mentions
Each of the three marketing media plays a different makes some marketers uneasy, since brands typically want to
role for brands. The mix of techniques required and the control their message. However, as Apple demonstrated with the
advantages marketers get from paid, owned and earned is far iPhone’s antenna problem, swift but careful responses can turn
greater online than offline. potential marketing nightmares into partial triumphs. Furthermore,
I Paid media amplifies the brand’s message across a variety of
nearly every study has shown that word-of-mouth influences
bought outlets. While paid media is essentially synonymous with brand awareness and purchase intent far more than paid
advertising, internet advertising is extremely diverse, with varying advertising or company-owned websites.
benefits and uses of banners, video and search. Advertising online By dividing the branding tools into three parts,
is typically not effective as a standalone performance; instead, it marketers can more effectively construct holistic
works to bring about further consumer-brand engagement campaigns that better reach their target audience.
through owned and earned media. In addition, online advertising The three marketing media not only work hand in hand but are
gives marketers reach and scale that is typically much greater also often synergistic.
than they get with the other two media types.
I Paid media seeps into owned media whenever a brand buys
I Owned media is about content or deals that attract paid search ads to drive traffic to its website.
consumers. Elements that give marketers the fullest control over
their message and its placement include brand websites and I Earned and owned feed off each other with the blend of social
blogs, email marketing to opt-in recipients, branded content and media word-of-mouth and fan pages on Facebook or consumers
social media components such as brand-sponsored fan pages following a brand’s Twitter feed and then re-tweeting the brand’s
on Facebook or Twitter feeds. Customer service is also partly messages with added commentary.
owned media, since the brand controls how it responds to I Owned, earned and paid also come together when consumer
unhappy consumers. That in turn shapes their perception of the product reviews are gathered on a brand’s site, or comments
brand as well as potential word-of-mouth. Unlike advertising, through customer service, and are then pushed out to other
owned media offers far less reach but substantially more websites or used in advertising.
personal contact and interactivity. Smaller target segments can
be nurtured over time through owned media. I The prime reason for consumer engagement with brands on
their owned websites or on social fan pages is often the same—
I Earned media Is about engaging with or listening to the
free products and discounts. It’s a blend of owned and earned,
consumer. Word-of-mouth on social sites or elsewhere is the and it’s where branding and direct response blend, too.
core component of earned media, as is related viral marketing.
The category also includes traditional public relations-derived
mentions in articles, news stories, product reviews, and online “To be creative requires divergent thinking
and offline video. However, as powerful as social media (generating many unique ideas) and then
conversations can be in promoting a brand or helping convergent thinking (combining those ideas
advertising elements go viral, much word-of-mouth still happens into the best result).” —Po Bronson and Ashley
outside of social networks. Brand marketers can inspire earned Merryman, in Newsweek, July 10, 2010
media mentions but—unlike owned—they cannot create it.
Brand Marketing Online 2

3. Holistic marketing across the three media are Brand Communication Choices
complementary and tend to be cost-effective.
Marketing media support one another, as when paid advertising
All brands want to convince consumers to buy
produces earned word-of-mouth, which stimulates traffic to
owned microsites. “We look for paid media, our brand websites products. Even as companies spend more for TV
and social media to feed on each other—to create a content advertising than on any other medium, the
ecosystem,” said Stephen Strong, the global interactive director at
Alberto Culver, in a July 2010 eMarketer interview. “That frees me internet gives brands more potential ways to
up from asking for hundreds of thousands dollars for our website.” connect with consumers. Because of the
extensive array of tools and methods available to
marketers, brands increasingly view their online
choices through the three media categories: paid,
owned and earned.
The internet’s huge audience makes brand marketing more
important than ever before. While most US clients participating in a
Razorfish study did not change their marketing objectives in 2009,
18% indicated they became more brand-focused while only 12%
cited greater attention to direct response objectives.
Change* in Marketing Objectives Among Razorfish US
Clients, 2009 (% of respondents)
More brand- More direct
focused response
18% 12%
No change
70%
Note: *vs. 2008
Source: Razorfish, "Outlook Report 2010," May 24, 2010
115934 www.eMarketer.com
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Brand Marketing Online 3

4. Further indications of brand marketing’s growing significance is
that even when a study’s prime focus is direct response, branding Old Spice Man: Blending the Media
is still fundamental. More than half of the respondents in CSO
Some of the most effective brand marketing online
Insights’ “2010 Lead Generation Optimization Key Trends Analysis”
relies on a blend of paid, owned and earned media,
report said that increasing brand awareness is among their top
as well as cross-channel elements from online and
three marketing objectives in 2010.
offline. The acclaimed Old Spice Man campaign—
Most Important Strategic Marketing Objectives, 2010 with response videos to celebrities, business
% of companies worldwide executives and everyday consumers—got its start
Increasing customer acquisition from a traditional TV campaign. And it gets a
91.2% continued lift from online advertising, which drives
Increasing brand awareness traffic to the brand’s (owned) microsite for this viral
54.0% hit video and to the cologne’s (earned) interactive
Optimizing cross-selling and up-selling Facebook page, where fans posed questions to
41.2% Isaiah Mustafa’s wonderfully outrageous character.
Optimizing new product introduction success
27.7% One takeaway for marketers using the Old Spice
Improving customer loyalty campaign as a model is that success depends on
24.7% excellent, compelling creative. And while every
Understanding and enhancing the customer experience brand would like to think all its video assets are
21.1% compelling, that is clearly not the case. Making
Increasing customer renewals advertising videos that consumers want to watch is,
17.0% in fact, very difficult.
Migrating from a product-centric to a customer-centric strategy
13.0% The main lesson for brand marketers is that Old
Spice’s well-stirred mix of paid media—both online
Note: respondents were asked to choose their top 3
Source: CSO Insights, "2010 Lead Generation Optimization Key Trends and offline—is an essential component in encouraging
Analysis," provided to eMarketer, July 19, 2010
usage of owned media (brand sites) and setting the
118226 www.eMarketer.com
118226 spark for earned media (word-of-mouth).Therefore,
In Razorfish’s “Digital Brand Experience Study,” an overwhelming building a campaign with plans for all three types of
97.1% of the internet users responding said they had an online media methods enhances the odds of boosting a
brand experience that influenced their purchase decision. Further, brand’s image, awareness and recognition.
more than a third of the respondents had an online experience However, when planning for marketing media, “The
that changed their opinion about a brand either positively or best brand dollars are spent not in multiple channels
negatively—which is typically more due to owned and earned for the sake of multiple channels,” said Kyle Sherwin,
than paid media. vice president of media at Sony Music, in a July 2010
interview with eMarketer. “Instead, you need to
Online Brand Experiences, Aug 2009
% of US internet users derive key insights from consumer research and do
your channel planning from there.”
Had an online experience with a brand that influenced their
purchase decision The Old Spice Man campaign also satisfied one
97.1%
classic requirement for brands. “When people are
Had an online experience that changed their opinion about a
brand* bombarded by 3,000 messages a day,” Sherwin
65.3% continued, “you need a consistent message across
Made their first purchase from a brand based on a digital all channels.”
experience**
64.1%
Note: ages 18+; among those who have had an online experience with a
brand; *positively or negatively; **via website, microsite, mobile coupon
or email
Source: Razorfish, "FEED: Digital Brand Experience Study," Nov 10, 2009
117415 www.eMarketer.com
117415
Brand Marketing Online 4

5. Paid Media Brand Spending
More than with offline advertising, the internet tends to blend
Paid media most often appears in the following forms: branding and direct response. That said, from 2010 through 2014,
marketers will increase their online spending for branding-focused
I Display ads (including banners, rich media and online video) ads by 10.8% to 17.1%, leveling off at 13.3%.
I Search
US Online Advertising Spending Growth, by Objective,
2009-2014
I Sponsorships
% change
Consumer goods companies are prime examples of the whole 17.1%
brand process, since in many cases it is the marketing—more 14.0%
13.3%
12.5% 12.1% 12.1%
than the actual product—that establishes them in the market. 10.8%
8.4% 8.9% 9.3%
The annual “Leading 100 Advertisers in the US” report, compiled 9.8% 9.2%
by Advertising Age and Kantar, paints a detailed portrait of ad
6.3% 5.6% 6.6%
spending across all media by the major brand marketers. In 2009, 4.3%
those top 100 companies spent nearly $55 billion in total 0
measured media advertising, placing 6.8% of those budgets
online. The 21 consumer goods marketers among the top 100 -3.4%
spent 22.3% of that $55 billion but averaged a mere 3% share of -7.0%
their measured media ad budgets into online advertising.
2009 2010 2011 2012 2013 2014
That 3% share illustrates problems and opportunities for brand Direct response Branding Total
marketing online: Many of the largest advertisers show little interest Source: eMarketer, May 2010
in the internet ads often most suited to branding. But that trend is 115205 www.eMarketer.com
115205
changing—and with it the spending focus of many brand marketers.
Some think the growth of alternative online brand channels has in
Take Alberto Culver, the personal and home products company. turn supported the growth of brand advertising.
“Our packaged goods category has been the slowest to move
“Social media has given us something else to react to in online
online,” said Stephen Strong, the company’s global interactive
space, and that has increased brand marketing growth,” said
director, in a July 2010 interview with eMarketer. “Only in the past
Alberto Culver’s Strong. “From the website publisher perspective,
three years have many brand marketers paid more attention to
all the studies from Dynamic Logic and Insight Express about
online, which aligns in time with the social media craze. Up until
brand metrics—enough packaged goods companies have started
three years ago, we were just into banner campaigns, but that
to believe in it.”
didn’t work as well.”
Brand Marketing Online 5

6. That perspective is contributing to steady gains in online brand Display Ads
advertising dollars, rising from only $9 billion in 2010 to over
Each year from 2009 through 2014, only video ad spending is
$15 billion in 2014.
expected to expand at a higher rate than total display.
US Online Advertising Spending, by Objective, While banner ads may not see the same soaring growth as video,
2009-2014
billions the projected gains of 8.2% in 2010 and 11.8% in 2012 are still
quite healthy. Part of that strength comes from brand marketers
$36.3
using banner placements across the web to gain greater reach at
$33.2 $15.2
reasonable cost.
$30.5 $13.4
US Online Display Ad Spending Growth, by Format,
$11.8
$27.2 2009-2014
$25.1 $10.1 % change
$22.7 $9.0 48.1%
$8.0 42.7% 43.4%
$21.1 38.6%
$19.8
$18.7 34.7%
33.0%
$17.2
$16.1
$14.7
17.6%
14.3% 13.6%
12.9% 12.5% 11.8%
8.2% 6.7% 7.7%
4.5% 4.7%
3.8% 4.7% 3.5% 4.7%
3.0% 3.1%
2009 2010 2011 2012 2013 2014
Direct response Branding
-8.3%
Note: numbers may not add up to total due to rounding
Source: eMarketer, May 2010 2009 2010 2011 2012 2013 2014
115204 www.eMarketer.com
Banner ads Rich media Video Total
115204
For additional information on this chart, see the Endnotes section. Source: eMarketer, May 2010
117410 www.eMarketer.com
117410
For additional information on this chart, see the Endnotes section.
For more information about ad spending trends, see
eMarketer’s May 2010 report “US Ad Spending: How Big While banners are not always effective on their own, they tend to
Is the Bounceback?” support other online ad vehicles. Seminal research from
Microsoft’s 2007 Atlas Institute demonstrated a “synergy between
search and display.” In that study, when users were exposed to
one or more display impressions prior to searching, there was a
22% lift in the likelihood of their clicking on the same advertiser’s
search ads. Since banner ads are often easily ignored, the higher
response rate was likely more subliminal than direct.
Brand Marketing Online 6

7. An Online Publishers Association (OPA) and Harris Interactive Certain display advertising placements reduce the marketer’s
study in April 2010 established a more direct connection between control. For example, when marketers purchase display inventory
display and search. When respondents were asked if they had or target audiences through some ad networks, they often do not
ever done brand searches after seeing a display ad, 8% to 16% fully know the sites or page content where their brand messages
said yes, depending on the type of site. While those figures may will appear. That ambiguity makes many brands reluctant to
appear small, they actually represent a significant lift in responses. implement larger online campaigns.
Actions Taken After Seeing an Ad on a Website, by The degree of concern about brand safety varies by industry, as
Website Type, April 2010 shown in survey data from the April 2010 Winterberry Group white
% of US internet users paper titled “Beyond the Grey Areas: Transparency, Brand Safety
OPA member Portal Social media and the Future of Online Advertising.”
sites channels (n=493)
(n=4,185) (n=1,544)
Brand searches 14% 16% 8% Advertising Professionals in North America Who
Purchases 8% 5% 2%
Believe that Brand Safety Is a Meaningful Issue, by
Industry, March 2010
Note: ages 18+
Source: Online Publishers Association (OPA) and Harris Interactive, "A scale of 1-5*
Sense of Place: Why Environments Matter," June 30, 2010
118001 www.eMarketer.com Healthcare and pharma 4.37
118001
Financial services 4.15
Brand marketers’ placement of display ads appears to be shifting
Consumer packaged goods 4.15
from portals to social network sites, most notably Facebook. In Q1
Not-for-profit 4.03
2010, for the first time more display advertising impressions
appeared on Facebook than anywhere else. (eMarketer’s Insurance 3.93
definition of display advertising includes rich media and online Travel and hospitality 3.68
video, not just banners.) B2B 3.59
Retail 3.38
Top 10 US Online Display Ad Publishers, Ranked by
Impressions, Q1 2010 Automotive 3.34
billions and % of total
Technology 3.24
1. Facebook 176.31 (16.2%) Telecom 3.22
2. Yahoo! sites 131.56 (12.1%) Entertainment 3.02
3. Microsoft sites 60.19 (5.5%)
Note: *1="not a major issue for advertisers" and 5="a major issue for
53.82 (4.9%) 4. Fox Interactive Media advertisers"
Source: Winterberry Group, "Beyond the Grey Areas: Transparency, Brand
5. AOL 32.10 (2.9%) Safety and the Future of Online Advertising," April 14, 2010
114525 www.eMarketer.com
25.85 (2.4%) 6. Google sites 114525
15.69 (1.4%) 7. Turner Network Beyond the specifics of brand safety, one way to interpret this data
7.82 (0.7%) 8. Glam Media
is the higher the number, the more conservative the industry
tends to be about protecting brand image in general.
7.48 (0.7%) 9. eBay
6.80 (0.6%) 10. Tagged Online video presents further safety risks for brand marketers.
Their apprehension includes not knowing if the content is suitable
Note: home, work and university locations; includes static and rich media
ads; excludes video ads, house ads and very small ads (<2,500 pixels in for their brands. It also encourages many brands to place video
dimension)
Source: comScore Ad Metrix as cited in press release, May 13, 2010 ads only within the traditional environs of Hulu and TV-network
115428 www.eMarketer.com owned sites.
115428
The distinction must be made between impressions and dollars. Marketers can minimize brand safety fears by staying away from
While the Yahoo! sites had about 45 billion fewer impressions than display inventory through ad networks. That tactic can get costly,
Facebook, the portal likely received substantially more ad revenue though, since ad networks tend to offer both lower prices for
from those display ads than the social network. This is because impressions and sizable reach. However, some marketers think
Yahoo! has far more premium pages than Facebook, which attract avoiding networks to protect their brands is not really necessary.
more brand marketers willing to pay higher CPMs.
Brand Marketing Online 7

8. “Brand safety is less of a concern for us, because from a media As reported by comScore, the top 10 destinations in June 2010 for
standpoint, we’re focused on content targeting,” said Strong at video ads per viewer were, in fact, either Hulu or TV-network sites.
Alberto Culver. “But if you’re advertising on networks, concerns
about your brand’s safety come up more for you.” Monthly Online Video Ads per US Viewer Delivered
via Select TV Video Content Sites, June 2010
Hulu 24.2
“Consumers get it—the internet is the wild
TheWB.com 20.0
west, and they’re not so worried if they see
ABC 15.6
a brand in the wrong space.” —Stephen Strong,
global interactive director, Alberto Culver, in an interview FOX 12.9
with eMarketer, July 2010 NBC 8.4
CWTV.com 7.9
The Winterberry Group concluded from its study that marketers CBS 7.7
“deflect ad dollars from the digital display channel—or hold back
Comedy Central 6.4
from committing spending in the first place—because of
TV.com 5.4
anticipated challenges with regard to risky placement.”
4.2 Discovery Digital Media sites
In fact, 60.5% of the respondents in the study said they would
Source: comScore Video Metrix as cited in company blog, July 15, 2010
increase their display advertising budgets by at least 10% or more
118237 www.eMarketer.com
if brand safety issues were successfully addressed. 118237
Viewed by market share, video’s portion of total display ad
Amount Online Display Advertising Spending Would spending will more than double from 2010 to 2014, rising from
Grow if Brand Safety Issues Were Successfully
Addressed According to Advertising Professionals in 17.6% to 37.5%. And while brand marketers will devote
North America, March 2010 increasingly smaller display-budget shares to banners—with its
% of respondents slice dropping to 50% by 2014—that still-significant figure
<5% 9.3% represents how banners can effectively shore up a campaign’s
overall campaign.
5%-10% 25.6%
10%-20% 46.5% US Online Display Ad Spending, by Format, 2009-2014
4.7% 20%-35% % of total and billions
2.3% 35%-50% 2009 total spending=$7.58
66.7% 19.8% 13.4%
50%+ 7.0%
2010 total spending=$8.56
4.7% No growth/negative growth
64.0% 18.4% 17.6%
Note: numbers may not add up to 100% due to rounding 2011 total spending=$9.63
Source: Winterberry Group, "Beyond the Grey Areas: Transparency, Brand
Safety and the Future of Online Advertising," April 14, 2010 60.7% 17.0% 22.3%
114532 www.eMarketer.com
2012 total spending=$11.32
114532
57.7% 15.1% 27.2%
The overall growth of the display ad market will depend on video.
2013 total spending=$12.94
But online video content, where far more streams exist than
54.3% 13.6% 32.1%
accompanying ads, presents further safety risks for brand
2014 total spending=$14.71
marketers. Their apprehension includes not knowing if the content
50.1% 12.3% 37.5%
is suitable for the brand, even when it may be.
Banner ads Rich media Video
That uncertainty inhibits video advertising across the broad
Source: eMarketer, May 2010
spectrum of video content. It also encourages many brands to be 117411 www.eMarketer.com
traditional—and simply place video ads only within fully trusted 117411
content, such as full television episodes on Hulu and the TV-network For additional information on this chart, see the Endnotes section.
owned sites.
Brand Marketing Online 8

9. Video’s Potential A large share of the advertisers and agencies also cited better
Brand marketers would like online video advertising to provide a content and better ways to reach target audiences as two key
combination of the engagement level available only online with factors that would encourage more online video advertising.
the awareness level they get from TV. In an April 2010 survey from
Tremor Media and DM2PRO, advertisers and agencies cited those Factors that Would Influence US
Advertisers/Agencies to Use More Online Video
two as their most likely online video campaign objectives. Advertising, April 2010
% of respondents
Campaign Objectives for Which US
Advertisers/Agencies Would Most Likely Use Online Better ROI measurement 92%
Video, April 2010
Quality content 84%
scale of 1-8*
Better reach 84%
Brand awareness 2.21
Integrated campaign management tools 73%
Brand engagement 2.29
Brand assurance/safety 70%
Ad awareness 2.87
Greater knowledge of ad formats 51%
Traffic driving 2.87
Note: n=104
Message association 3.20 Source: Tremor Media and DM2PRO, "State of Online Video 2010," April 12,
2010
Purchase intent 3.26
115593 www.eMarketer.com
Online sales 4.20 115593
Direct response/opt-in 4.39
Brick-and-mortar sales 4.72
“Online video and display advertising remain
our biggest spends in digital media.”
Note: n=98; *where 1="most likely campaign objective" and 8="least
likely" —Rob Master, director of North American media, Unilever,
Source: Tremor Media and DM2PRO, "State of Online Video 2010," April 12,
2010 in an interview with eMarketer, May 2010
115590 www.eMarketer.com
115590
Quantitative data from YuMe found that 91.5% of video ads last
However, while marketers understand video’s potential to year were in-stream, while a mere 1.2% of video ad impressions
enhance branding, many still don’t know how to put online video came from in-banner placements. The strong usage of preroll
campaigns into practice. among brand marketers is likely due to that format’s similarity to
Compared with the simplicity of choosing 15 or 30 seconds for a TV commercials.
TV commercial, video online both enriches and complicates
matters. Do you stream your video ads as part of TV-network or “Online storytelling will bring us huddled
other premium content? Can you get effective results using
around our monitors like our great-
standalone video ads in banners? Is sponsorship useful for online
grandparents huddled around the fireplace,
video branding?
like our parents huddled around the radio,
In a June 2010 MediaPost survey, executives were evenly split about like we once huddled around the television—
whether premium content or in-banner video provides the best ROI. and we’ll tell stories like they’ve never been
told before.” —Jason Bangerter, founder and chairman,
Video Advertising that Provides the Best ROI, June
2010 StruckAxiom, in the “2010 Digital Marketing Outlook” report
% of US media industry executives* from the Society of Digital Agencies, January 2010
Premium content online 53%
In-banner video 52%
Local TV show sponsorship 42%
Note: *those who plan, buy or approve media budgets
Source: MediaPost Communications Center for Media Research and
InsightExpress, "Video Marketing Study: The TV, Online, Mobile Video
Future" as cited in press release, Jun 15, 2010
117306 www.eMarketer.com
117306
The MediaPost results were reinforced by 92% of the respondents in
the Tremor/DM2PRO survey, who said that better ROI measurement
would encourage them to use more online video advertising.
Brand Marketing Online 9

10. eMarketer estimates that video advertising spending increases However, when Frank N. Magid Associates surveyed the online
will remain healthy, reaching over $5.5 billion in 2014, with CAGR video audience in May 2010, the respondents were less
rising by more than 38%. enchanted by video ads compared with TV. While only 7% said that
ads in online videos are more acceptable than TV commercials,
US Online Display Ad Spending, by Format, 2009-2014 24% said the digital variety is less acceptable.
billions
$14.71 Attitudes Toward Online Video Ads Relative to TV
$5.52 Commercials, May 2010
$12.94
% of US online video viewers
$4.15
$11.32
$3.08 Ads in online videos are more acceptable
$9.63
7%
$8.56 $2.15
$7.58 $1.76 $1.82
$1.51 $1.71 Ads in online videos are just as acceptable as ads in TV shows
$1.02 $1.63 $7.37 48%
$1.58 $7.04
$1.51 $6.53
$5.48 $5.85 Ads in online videos are less acceptable
$5.06
24%
Not sure
22%
2009 2010 2011 2012 2013 2014 Note: n=1,800 ages 8-64; numbers may not add up to 100% due to
rounding
Banner ads Rich media Video Source: Frank N. Magid Associates, "Magid Media Futures 2010: Online
Source: eMarketer, May 2010 Video" sponsored by Metacafe, Jun 29, 2010
117409 www.eMarketer.com 117010 www.eMarketer.com
117010
117409
For additional information on this chart, see the Endnotes section. The difference between the comScore and Magid data is likely due
to how the questions were phrased, with comScore asking only
The push toward more online video ads is supported by consumer about video ads streamed along with full episodes of professional
attitudes. Research from comScore found more positive feelings TV content, and Magid asking about online video ads in general,
about video ads, including brand favorability, among video viewers regardless of the content.
watching full-length TV shows online than just TV viewers.
Brand marketers can learn an important lesson from those
Attitudes Toward Ads Among US TV Viewers vs. differing results: At this stage, traditional TV-branded content
Online Video* Viewers, December 2009 continues to be central for online advertising.
% of respondents
Commercials make me think favorably about the brand being For more information about how consumer brands use video
advertised
marketing, see eMarketer’s January 2010 report “Consumer
31%
19% Packaged Goods Sector Taps into Online Video.”
Commercials are memorable
30% Using Search for Branding
22%
Commercials are relevant to me As images and video have become standard parts of search
30% results, its usefulness for branding has grown. That’s why brand
19% marketers increasingly buy search ads as an additional element in
Online video* viewers TV viewers their overall campaigns.
Note: *full-length TV shows viewed online “More and more traditional brand advertisers are embracing
Source: comScore Inc., "The Future of Original TV Viewing and the New
Digital Consumer," March 2010; as cited in company blog, April 29, 2010 search and search advertising as a way to build their brands
114908 www.eMarketer.com online,” said Patrick Pichette, Google’s chief financial officer, on the
114908
company’s July 2010 earnings call. “A case in point is P&G. It’s one
of the largest brand advertisers in the world. And it’s now one of
our top advertisers in the US.”
Brand marketers often use search to increase awareness, and to
reinforce other parts of their campaigns. “We are quite aggressive
with search marketing, not just for direct response, but to
introduce new artists, because there are more creative and visual
things you can do with search,” said Kyle Sherwin, Sony Music’s
vice president of media, in a July 2010 interview with eMarketer.
Brand Marketing Online 10

11. In a September 2009 PopSugar Media survey, more than half of “You have to make it easy to provide some
both Gen X and Gen Y females said they used search to discover value. When someone clicks on a link, drive
new brands. Only the outcome of a traditional earned-media tactic them to the publisher’s page where we
(public-relations placements in articles) drew more respondents.
have sponsorships, banners or video ads.”
—Montana Triplett, senior director of marketing at Tremor
Methods Used to Discover New Brands/Products
According to US Female Internet Users, by Media and former media and interactive brand manager at
Generation, September 2009 Coca-Cola, in an interview with eMarketer, July 2010
% of respondents
An article I read on a magazine or newspaper's Website A Razorfish study found that more US internet users always or usually
66%
searched for a brand online than posted brand reviews, watched
64
video ads on YouTube or provided feedback directly to a brand.
A search on a site like Google or Yahoo!
52%
Brand-Related Online Activities of US Internet Users,
53% August 2009
An online ad I saw and clicked on % of respondents
35% Always Usually Some- Never
37% times
An online ad I saw but didn't click on Search for a brand online (e.g., Nike) 26.4% 40.6% 30.0% 3.0%
28% Post product or brand reviews on 12.7% 22.5% 38.0% 26.8%
38% Websites (e.g., Amazon, Yelp,
Facebook, Twitter)
A friend mentioning it on his or her online profile or status
update Watch commercials or video 10.4% 15.7% 50.7% 23.2%
advertisements on YouTube
22%
Play browser-based games produced 9.5% 15.8% 39.3% 35.4%
42%
by a brand (e.g., Got Milk?)
A mention on a blog written by someone like me
Provide feedback to a brand, either 9.3% 18.4% 41.3% 31.0%
16% through its Website or a third-party
28% service (e.g., Get Satisfaction)
A mention on a blog written by professional/subject experts Read blogs produced by products or 8.7% 18.2% 42.2% 30.9%
16% brands (e.g., Nintendo)
22% Blog about a brand, product or service 8.2% 13.0% 31.3% 47.5%
An online video I watched Interact with a banner ad on your 4.9% 8.5% 17.3% 69.3%
mobile phone
11%
14% Note: n=1,000 ages 18+
Source: Razorfish, "FEED: Digital Brand Experience Study," November 10,
Generation X Generation Y 2009
108529 www.eMarketer.com
Source: PopSugar Media, "Why Y Women?" conducted by Radar Research, 108529
October 29, 2009
108283 www.eMarketer.com
Consumer brand searching typically takes two basic forms:
108283
I Searching for brands themselves, the perennial branding approach
Brands can also use search marketing indirectly to drive traffic to
third-party sites where the brand has a presence. I Searching on a campaign’s brand terms, which is often
time-driven, set off by live ad campaigns or third-party mentions
“When I worked at Coke,” said Montana Triplett, the former media
and interactive brand manager on Coke Zero and current marketing
director at Tremor Media, “we used search to drive traffic to content.
For example, if we were doing a football promotion, we made sure
our results went to the top when someone typed ‘fantasy football.’”
Brand Marketing Online 11

12. In a 2009 study from comScore, GroupM Search and M80, 23% of Owned Media
internet users were exposed to paid search ads based on the
brand product terms.
The owned media category consists of
US Internet Users Who Search on Brand Product several elements:
Terms, by Ad Exposure, 2009
% of total
I Websites and microsites
Paid search only
23% I Brand blogs
Relevant social media and paid search
I Email marketing to house lists
38%
Influenced social media and paid search I Branded content distributed across the internet (often video)
65%
I Social media elements, such as fan pages on Facebook and
Note: read chart as saying that 23% of Internet users exposed to paid
search ad then search on brand product terms Twitter feeds
Source: comScore, GroupM Search and M80, "The Influenced: Social Media,
Search and the Interplay of Consideration and Consumption," October 6,
2009 Unlike the broad reach of paid media, owned media tends to
107406 www.eMarketer.com attract a niche audience. The consumers who come to a brand’s
107406 site, opt-in for emails or like a Facebook fan page “are more
The same survey found that 45% of respondents saw paid search engaged consumers to start with,” said Alberto Culver’s Strong in
ads related to current campaigns. an interview with eMarketer.
In particular, consumer goods companies see that in the digital
US Internet Users Who Search on Campaign Brand
Terms, by Ad Exposure, 2009 environment, marketing their products’ benefits—instead of the
% of total products themselves—through websites or branded content is
Paid search only 45%
often most effective. How to style more beautiful hair, ways to
improve your dental health, games for helping your baby be
Relevant social media and paid search 64%
happy—these are all owned media techniques that are a form of
Influenced social media and paid search 77%
brand extension.
Note: read chart as saying that 45% of Internet users exposed to paid
search ad then search on campaign brand terms
Source: comScore, GroupM Search and M80, "The Influenced: Social Media,
Search and the Interplay of Consideration and Consumption," October 6, “I don’t want to have a relationship with
2009
Tylenol. I want my headache to go away.”
107404 www.eMarketer.com
107404 —Rishad Tobaccowala, chief strategy and innovation
officer, VivaKi, at Audience Science’s 2010 Targeting
Summit, April 2010
As banner CPMs drop and the number of sites competing for
display ad dollars rise, publishers look for additional revenue
channels. “The other twist we’ve taken is asking publishers to
create branded content just for us—take our media dollars just for
that,” said Strong.
“We ask for a guaranteed number of views on their site, to have a
degree of engagement, and we can distribute those vids through
other advertising channels,” he continued. “For example, we
launched Dirty Little Secrets through the Elle website, branded
content that’s melodramatic episodes.”
“Most of the time, owned media is also
where the campaign experience is fulfilled.”
—David Berkowitz, senior director of emerging media and
innovation, 360, posted on the company blog, April 2009
Brand Marketing Online 12

13. Customer service and CRM is another element of owned media in Brand websites are also often the place where marketing efforts
which the company can control direct contact with consumers on the connect with live shoppers. Second to using search engines to find
web, or a mix of web and phone.While the possible word-of-mouth branded products, more consumers (20%) in a March 2010 survey
generated by customer service interactions is beyond a company’s from PowerReviews and the e-tailing group said they start with
control, there’s little doubt that good service—which a brand can the brand’s site when searching for product information.
control—tends to lead to good comments among consumers.
Sources Used to Begin a Search for Information on
Branded Products* According to US Online Buyers**,
Websites and Blogs March 2010
% of respondents
As the brand’s online face, companies increasingly turn websites
into a hub for consumer engagement that draws traffic from both I start with a search engine and look for top search results for
products I desire
paid and earned media sources. 57%
I start with the brand's site because I believe they will have the
The marketers polled by the Association of National Advertisers in most complete and reliable information
May 2010 also think of websites as “brand central,” with 82% of 20%
respondents saying their sites were a leading touchpoint for I like to research at a retailer in order to compare a series of
building connections with consumers. In addition, 64% of the brands under one retail umbrella
18%
marketers cited CRM as a key branding touchpoint.
I reach out to my social network on Facebook for
recommendations
Leading Touchpoints Used by Brands to Build 3%
Emotional Connections with Consumers According to
US Marketers, April 2010 I pose a question on Twitter
% of respondents 2%
Note: *i.e., HP computer, Panasonic TV, Nike shoes; **buy online at least
Brand Website 82%
four times per year and spend $250+ per year online
Source: PowerReviews and the e-tailing group, "2010 Social Shopping
Sales force 66%
Study," provided to eMarketer, May 3, 2010
CRM 64% 115184 www.eMarketer.com
115184
TV advertising 55%
Company-run blogs and microblogs blend elements of owned and
Call centers/telemarketing 52% earned media. Blog posts are controlled by the brand, but consumer
Source: Association of National Advertisers (ANA), "The Brand comments are standard uncontrolled earned media.While a brand
Management Survey" as cited in press release, May 18, 2010
could moderate comments to eliminate all negative remarks, that
115458 www.eMarketer.com
115458 would likely reduce how much consumers trust the brand.
The connection between websites and branding is seen in a (Moderation to remove spam and profanity is another matter.)
February 2010 report from eROI and eMarketing + Commerce.
Companies would be wise to view that trust as essential to their
When the marketers were asked to cite the single business success
entire brand marketing process. In general, 22% of US internet
they attribute most to their online marketing efforts, the two top
users surveyed by Fleishman-Hillard and Harris Interactive trusted
results were gains for both website traffic and brand awareness.
companies a lot or a little more if they have a microblog, while 7%
trust it less.
Business Success US Marketers Attribute Most to
Their Online Marketing Efforts, 2009
% of respondents Change in Trust Level Toward Companies with a
Microblog, Jan 2010
Increased Website traffic 24% % of US internet users
Improved brand awareness 21%
6% Trust it a lot more
Increased sales 20%
16% Trust it a little more
New products/services 16%
No difference 71%
List growth 11%
7% Trust it less
6% Improved customer services
Source: Fleishman-Hillard and Harris Interactive, "Digital Influence Index:
Other 3% Understanding the role of the Internet in the lives of consumers," June 23,
2010
Note: n=623; numbers may not add up to 100% due to rounding 118093 www.eMarketer.com
Source: eROI and eMarketing + Commerce (eM+C), "Online Marketing 118093
Trends: What Worked in 2009 and What to Expect in 2010," provided to
eMarketer, February 1, 2010
112624 www.eMarketer.com
112624
Brand Marketing Online 13

14. But brands can create goodwill with a blog’s mix of owned content Video is the primary medium for online branded content, and in
and earned feedback. The same survey found more positive than the TurnHere study, 57.3% of respondents said they made branded
negative attitudes: 72% of respondents said they were glad web videos.
microblogs were monitored because they felt the company paid
attention to their issues, while only 19% felt such monitoring was Types of Online Video Made by US Companies, Q3
2009
only for show.
% of respondents
Attitude Toward Companies Monitoring Microblogs, Branded video produced for the Web 57.3%
Jan 2010
Product or service demos 40.0%
% of US internet users
Editorial video content 38.7%
Be glad they were listening and responding to my issue
72% Customer/employee testimonials 37.3%
Feel like they were spying on me and violating my privacy Viral video 30.7%
22%
Company overviews 28.0%
Feel they were taking no action and it was just for show
19% Video blogging 21.3%
20.0% Internal training videos
Source: Fleishman-Hillard and Harris Interactive, "Digital Influence Index:
Understanding the role of the Internet in the lives of consumers," June 23,
13.3% Episodic series
2010
118089 www.eMarketer.com 6.7% Behind-the-scenes footage
118089
Other 6.7%
Branded Content
Note: among companies that made online video in the past 12 months
Source: TurnHere, "Online Video: Brands and Agencies Catch the Wave,"
Some people mix up branded content with product placement. October 20, 2009
While both marketing methods are often lumped together as 110123 www.eMarketer.com
110123
branded entertainment, the marketer has control over branded
Branded content typically gets multiple uses.
content, but generally does not with product placement. In that
regard, product placement is a form of earned media when it’s “We’ve been looking at how we can generate branded content
free or advertising when the marketer pays for the mention. offline that we can export online—like with TRESemmé during
fashion week, which we sponsor,” said Alberto Culver’s Strong. “As
part of that sponsorship, we generate a lot of video content, such
“You don’t know what’s going to happen as our stylists doing the models’ hair.”
with product placement. Maybe the hero
drinks a branded soft drink in one scene,
then it’s used as a murder weapon later.” “With content, we think: Where else can we
—Adam Erlebacher, co-founder, PlaceVine; in an interview place it? So we get it to show up on
with eMarketer, June 2009 Walmart.com, or on Facebook. We think of it
as a content ecosystem.” —Stephen Strong, global
Branded content offers marketers owned media that they can interactive director at Alberto Culver, in an eMarketer
distribute across multiple channels—their own website, video interview, July 2010.
aggregation sites, their fan page on Facebook. And, if they get
lucky, others will distribute the branded content for them should
the clip go viral.
Brand Marketing Online 14

15. Such multiple usage is likely one reason why 68% of the Email Marketing
respondents in the Tremor/DM2PRO study cited branded video as
Email is similar to search advertising in that both are mainly used
having the highest ROI.
for direct response, but there is still a clear place for brand
Online Video Advertising Format that Has the Highest marketers. For example, 56% of the marketers surveyed by
ROI According to US Advertisers/Agencies*, April 2010 MarketingSherpa cited email as very important for building a
% of respondents brand and educating a market about it. Another 38% deemed it
Expanding video in banner 69% somewhat important.
Branded video 68%
Important E-Mail Marketing Objectives According to
Content integration 62% US E-Mail Marketers, August 2009
% of respondents
Interactive preroll 59%
Retain existing customers 2%
Rich media overlay 58%
88% 10%
Preroll 51%
Generate new sales leads 4%
Pageroll 47% 78% 17%
Mobile video 38% Increase Web traffic
Video widgets 36% 56% 38% 6%
Postroll 15% Build brand and educate market
56% 38% 6%
Note: n=98; *who indicated "good" or "excellent"
Source: Tremor Media and DM2PRO, "State of Online Video 2010," April 12, Drive offline sales
2010
56% 22% 23%
115589 www.eMarketer.com
115589 Drive online sales
Robust ROI boosts the bottom line and attracts greater 51% 31% 17%
investment, too. When BrightRoll surveyed ad agency executives, Very important Somewhat important Not important
20% said they planned to spend more on branded video Note: n=1,493; numbers may not add up to 100% due to rounding
entertainment in 2010, surpassed only by interactive preroll (the Source: MarketingSherpa, "Email Marketing Benchmark Survey," November
2009 as cited in press release, April 13, 2010
developing form of video paid media). 115642 www.eMarketer.com
115642
Online Video Ad Format on Which US Ad Agency
Executives Plan to Spend More in 2010
% of respondents
Other
11%
Custom
Webisodes
15%
Interactive preroll
54%
Branded
entertainment
20%
Note: among those who plan to spend more
Source: BrightRoll, "BrightRoll Video Advertising Report: Q1 2010," April 22,
2010
114575 www.eMarketer.com
114575
Some marketers are concerned that online video tends to cost
more than other online formats. However, when a brand’s
campaign is designed holistically—across marketing methods and
media channels—costs can become more manageable because
various bits get multiple usage.
“What I’ve found is that if you treat online as an extension of other
programs—such as spending our online dollars to distribute our
video content as part of bigger program—that also puts online as part
of bigger budget,” concluded Strong.“Then it looks pretty cheap.”
Brand Marketing Online 15

16. In a survey from the e-tailing group, most of the 2010 respondents Perhaps email is not as outmoded as various articles have
cited direct response goals as important uses of email marketing. proposed. Substantially more internet users polled by ExactTarget—
Still, one-quarter of the online retailers said email was important an email marketing vendor—in April 2010 said they engaged with
for reinforcing their brand proposition. brands more via email than through Facebook or Twitter.
Important* Uses of E-Mail Marketing According to US Ways Consumers Engage* Brands, April 2010
Online Retailers, 2009 & 2010 % of US daily users of email, Facebook and Twitter
% of respondents
Via email 94%
Drive incremental revenue
73% Via Facebook 66%
77% Via Twitter 42%
Increase purchasing from your catalog or store
Note: Read chart as saying 94% of daily email users have engaged with a
53% brand via email; *engage/interact with the brand/company through
68% respective channel
Source: ExactTarget, "Subscribers, Fans and Followers: The Social Profile,"
Increase purchase frequency provided to eMarketer, Jul 13, 2010
49% 117712 www.eMarketer.com
55% 117712
Acquire new customers Similar to brand websites being seen as sources of discounts and
42% other deals, 62% of the consumers surveyed by ExactTarget
29% opted-in to a brand’s emails to get promotions—far more than the
Sell seasonal product number of respondents who chose social media channels for the
38% same benefits.
24%
Reinforce your brand proposition Methods of Finding Deals and Promotions, April 2010
24% % of US internet users
25%
Look on a brand's website 76%
Increase average order
23% Sign up for email promotion from brand's website 62%
27% Use a search engine 54%
Reactivate customers
17% Search on Facebook
22%
30% 3% Search on Twitter
Improve loyalty Note: ages 15+
22% Source: ExactTarget, "E-Mail X-Factors," Jun 24, 2010
117014 www.eMarketer.com
27%
117014
Liquidate product
17% Fan Pages and Twitter Feeds
12%
New product introductions Fan pages and Twitter feeds might at first appear to be entirely
19% earned media, since they are key parts of the social internet. But
the control that marketers have over their own pages and feeds
2009 2010
gives them the ownership that many brands seek, and some insist
Note: *rated as "very" or "somewhat important"
Source: the e-tailing group, "9th Annual Merchant Survey," provided to on. (Note that pages created by engaged or disgruntled consumers
eMarketer, March 15, 2010
are considered earned media because of the lack of brand control.)
114754 www.eMarketer.com
114754
In addition, the brand’s audience will hopefully comment and
interact through those fan pages and their own tweets, making these
channels a blend of owned and earned,similar to brand blogs.
Brand Marketing Online 16